Filing your income tax return in Ireland can be stressful, especially if you’re self-employed, a landlord, a company director, or a contractor. With the October 31st deadline approaching fast, it’s crucial to avoid common mistakes that could cost you time, money, and peace of mind.
In this article, we’ll outline the top 3 tax mistakes people make and provide actionable tips on how to avoid them. By following these guidelines, you can file your return correctly, claim all available tax credits, and avoid unnecessary penalties.
1. Failing to File on Time
One of the most common mistakes is failing to submit your tax return by the October 31st deadline. Missing this deadline can result in automatic penalties, interest charges, and even audits. Many taxpayers underestimate the importance of filing on time, assuming that if they are not earning a profit, filing isn’t necessary — but this is not true.
Even if your business is in its early years and operating at a loss, you are still legally required to file a return. In fact, declaring losses can sometimes benefit you, as they can be carried forward to offset profits in future years, reducing your tax liability later.
Who Must File?
The list of people who must submit an income tax return is broader than many realise. It includes:
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Self-employed contractors and freelancers
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Landlords and property owners
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Taxi drivers
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Tutors and consultants
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Small business owners
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Proprietary directors of companies
It’s also worth noting that many people forget to register for self-assessment with Revenue before attempting to file. Without registration, you cannot submit a return, and this oversight can delay the process and increase stress as the deadline approaches.
Tip: Start early. Even preparing your documents in advance can save a lot of last-minute panic.
2. Not Declaring All Income
Another frequent mistake is failing to declare all sources of income. Your tax return must include more than just self-employment earnings. Forgetting to include other income streams can lead to penalties, interest, and potential audits.
Types of Income You Must Include:
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PAYE income – earnings from employment, pensions, or other wages
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Payments from the Department of Social Protection – including unemployment or illness benefits
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Dividends and deposit interest – any income earned from investments or savings accounts
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Foreign income – earnings from abroad, which may also require additional reporting
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Exempt income – yes, even income that is technically exempt from tax must still be listed
If you are jointly assessed for tax purposes, you must also include your spouse or civil partner’s income on your return. Many taxpayers are unaware of this requirement, which can result in mistakes and penalties.
Example: A landlord who receives rental income from multiple properties and also works a part-time job may forget to declare the PAYE income. Failing to include both sources can trigger Revenue penalties.
Tip: Make a complete list of all income sources at the start of the tax year. Double-check bank statements, invoices, and benefit letters to ensure nothing is missed.
3. Not Claiming All Tax Credits
Many taxpayers miss out on valuable tax credits, which could reduce their overall tax liability. Not claiming credits you’re entitled to is essentially leaving money on the table.
Commonly Overlooked Tax Credits:
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Health expenses – medical bills, prescription costs, and qualifying treatments
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Home carer credit – if you care for a dependent at home
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Tuition fees credit – for approved courses or professional development
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Flat-rate expenses for self-employed professions – including certain trades or professions where standard deductions apply
Even small credits can make a difference in your tax bill, especially if combined. By claiming everything you’re entitled to, you can reduce your tax liability significantly.
Tip: Keep receipts and documentation for all potential credits throughout the year. TaxReturned.ie can help ensure you claim every credit available to you.
How TaxReturned.ie Can Help
Filing your Irish tax return doesn’t have to be stressful. At TaxReturned.ie, we help self-employed individuals, landlords, directors, and other taxpayers:
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File on time to avoid penalties
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Declare all income accurately to stay compliant
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Claim all eligible tax credits to reduce your tax liability
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Prepare and submit returns efficiently, saving you time and stress
With the October 31st deadline approaching, it’s important not to delay. Filing early ensures accuracy, avoids last-minute pressure, and maximises potential refunds or credits.
✅ Don’t wait until the last minute. File your Irish tax return stress-free with TaxReturned.ie today.
Visit TaxReturned.ie now to get started. Our team will guide you through the process, help you avoid common mistakes, and ensure your tax return is filed correctly and on time.